101.32-35

Session 2012 - 13
Internet Publications
Other Bills before Parliament

Lords Amendments to the Financial Services Bill

32

“UK clearing houses

89B
Application to UK clearing houses

(1)
This Part applies to UK clearing houses as it applies to banks,

subject to—

(a)
the modifications specified in subsections (2) to (5), and in

the Table in subsection (6), and

(b)
any other necessary modifications.

(2)
For section 13 substitute—

“13
Transfer of ownership

(1)
The third stabilisation option is to transfer ownership of the

UK clearing house to any person.

(2)
For that purpose the Bank of England may make one or

more share transfer instruments.”

(3)
For sections 28 and 29 substitute—

“28
Onward transfer

(1)
This section applies where the Bank of England has made a

share transfer instrument, in respect of securities issued by

a UK clearing house, in accordance with section 13(2) (“the

original instrument”).

(2)
The Bank of England may make one or more onward share

transfer instruments.

(3)
An onward share transfer instrument is a share transfer

instrument which—

(a)
provides for the transfer of—

(i)
securities which were issued by the UK

clearing house before the original instrument

and have been transferred by the original

instrument or a supplemental share transfer

instrument, or

(ii)
securities which were issued by the UK

clearing house after the original instrument;

(b)
makes other provision for the purposes of, or in

connection with, the transfer of securities issued by

the UK clearing house (whether the transfer has

been or is to be effected by that instrument, by

another share transfer instrument or otherwise).

(4)
An onward share transfer instrument may not transfer

securities to the transferor under the original instrument.

(5)
The Bank of England may not make an onward share

transfer instrument unless the transferee under the original

instrument is—

(a)
the Bank of England,

(b)
a nominee of the Treasury, or

(c)
a company wholly owned by the Bank of England or

the Treasury.

33

(6)
Sections 7 and 8 do not apply to an onward share transfer

instrument (but it is to be treated in the same way as any

other share transfer instrument for all other purposes,

including for the purposes of the application of a power

under this Part).

(7)
Before making an onward share transfer instrument the

Bank of England must consult—

(a)
if the UK clearing house is a PRA-authorised person,

the PRA, and

(b)
the FCA.

(8)
Section 26 applies where the Bank of England has made an

onward share transfer instrument.

29
Reverse share transfer

(1)
This section applies where the Bank of England has made a

share transfer instrument in accordance with section 13(2)

(“the original instrument”) providing for the transfer of

securities issued by a UK clearing house to a person (“the

original transferee”).

(2)
The Bank of England may make one or more reverse share

transfer instruments in respect of securities issued by the

UK clearing house and held by the original transferee

(whether or not they were transferred by the original

instrument).

(3)
If the Bank of England makes an onward share transfer

instrument in respect of securities transferred by the

original instrument, the Bank may make one or more

reverse share transfer instruments in respect of securities

issued by the UK clearing house and held by a transferee

under the onward share transfer instrument (“the onward

transferee”).

(4)
A reverse share transfer instrument is a share transfer

instrument which—

(a)
provides for transfer to the transferor under the

original instrument (where subsection (2) applies);

(b)
provides for transfer to the original transferee

(where subsection (3) applies);

(c)
makes other provision for the purposes of, or in

connection with, the transfer of securities which are,

could be or could have been transferred under

paragraph (a) or (b).

(5)
The Bank of England may not make a reverse share transfer

instrument under subsection (2) unless—

(a)
the original transferee is—

(i)
the Bank of England,

(ii)
a company wholly owned by the Bank of

England or the Treasury, or

(iii)
a nominee of the Treasury, or

(b)
the reverse share transfer instrument is made with

the written consent of the original transferee.

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(6)
The Bank of England may not make a reverse share transfer

instrument under subsection (3) unless—

(a)
the onward transferee is—

(i)
the Bank of England,

(ii)
a company wholly owned by the Bank of

England or the Treasury, or

(iii)
a nominee of the Treasury, or

(b)
the reverse share transfer instrument is made with

the written consent of the onward transferee.

(7)
Sections 7 and 8 do not apply to a reverse share transfer

instrument (but it is to be treated in the same way as any

other share transfer instrument for all other purposes

including for the purposes of the application of a power

under this Part).

(8)
Before making a reverse share transfer instrument the Bank

of England must consult—

(a)
if the UK clearing house is a PRA-authorised person,

the PRA, and

(b)
the FCA.

(9)
Section 26 applies where the Bank of England has made a

reverse share transfer instrument.”

(4)
For sections 45 and 46 substitute—

“45
Transfer of ownership: property transfer

(1)
This section applies where the Bank of England has made a

share transfer instrument, in respect of securities issued by

a UK clearing house, in accordance with section 13(2) (“the

original instrument”).

(2)
The Bank of England may make one or more property

transfer instruments.

(3)
A property transfer instrument is an instrument which—

(a)
provides for property, rights or liabilities of the UK

clearing house to be transferred (whether accruing

or arising before or after the original instrument);

(b)
makes other provision for the purposes of, or in

connection with, the transfer of property, rights or

liabilities of the UK clearing house (whether the

transfer has been or is to be effected by the

instrument or otherwise).

(4)
The Bank of England may not make a property transfer

instrument in accordance with this section unless the

original instrument transferred securities to—

(a)
the Bank of England,

(b)
a company wholly owned by the Bank of England or

the Treasury, or

(c)
a nominee of the Treasury.

(5)
Sections 7 and 8 do not apply to a property transfer

instrument made in accordance with this section.

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(6)
Section 42 applies where the Bank of England has made a

property transfer instrument in accordance with this

section.

(7)
Before making a property transfer instrument in accordance

with this section, the Bank of England must consult—

(a)
if the UK clearing house is a PRA-authorised person,

the PRA, and

(b)
the FCA.

46
Transfer of ownership: reverse property transfer

(1)
This section applies where the Bank of England has made a

property transfer instrument in accordance with section

45(2) (“the original instrument”).

(2)
The Bank of England may make one or more reverse

property transfer instruments in respect of property, rights

or liabilities of the transferee under the original instrument.

(3)
A reverse property transfer instrument is a property

transfer instrument which—

(a)
provides for transfer to the transferor under the

original instrument;

(b)
makes other provision for the purposes of, or in

connection with, the transfer of property, rights or

liabilities which are, could be or could have been

transferred.

(4)
The Bank of England must not make a reverse property

transfer instrument unless—

(a)
the transferee under the original instrument is—

(i)
the Bank of England,

(ii)
a company wholly owned by the Bank of

England or the Treasury, or

(iii)
a nominee of the Treasury, or

(b)
the reverse property transfer instrument is made

with the written consent of the transferee under the

original instrument.

(5)
Sections 7 and 8 do not apply to a reverse property transfer

instrument made in accordance with this section.

(6)
Before making a reverse property transfer instrument in

accordance with this section, the Bank of England must

consult—

(a)
if the UK clearing house is a PRA-authorised person,

the PRA, and

(b)
the FCA.

(7)
Section 42 applies where the Bank of England has made a

reverse property transfer instrument in accordance with

this section.”

(5)
For section 81 substitute—